IPTV Burgeoning Differently in Different Markets

By: Derek Medlin, Senior Analyst, Pyramid Research
(Business News & Technology News, 23 Jan 2008)

Offered either on a stand-alone basis or bundled with other telecom products, IPTV services are experiencing noteworthy expansion across developed and emerging markets. IPTV subscriptions doubled in number over the past 12 months and will continue to post double-digit growth over the next four years as they are rolled out in markets around the world. In numbers, the results are as follows:

- Pyramid Research estimates there were more than 15 million IPTV subscribers at year-end 2007.
- Using our bottom-up regional analysis and forecasts, Pyramid Research anticipates a global IPTV market in 2011 of more than 72.6 million subscribers.

But all is not equal even among IPTV offerings. Currently, IPTV services do not evolve in a linear manner from basic to highly sophisticated products. Some telcos launch highly interactive IPTV services with a wide content portfolio from day one, while others go to market with a "basic VoD-only" approach. By considering market conditions and their own broadband objectives, telcos define and revise components of their IPTV strategies on a regular basis.

The shape and form of IPTV packages are determined largely by competitive dynamics in both the broadband and pay-TV markets. Although regulatory frameworks have played a role in limiting the extent of individual IPTV portfolios, it is the positioning and pricing strategies employed by each telco that determine the pace of IPTV development, regardless of the level of development of the market as a whole.

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